Land Board eyes new policy on flared gas royalties
This week we’ll again talk to the Board of Land Commissioners about getting the royalties the state should on minerals produced from school trust lands.
Once again, the board will rule on several lease extensions that again show the willingness of industry to pay higher royalties on these state-owned minerals. The Board of Land Commissioners meeting starts at 8 a.m. Feb. 2 in Room B63 in the Herschler Building.
The board also will consider a new policy regarding flaring of gas produced from wells on state lands. The Office of State Lands and Investments wants to reduce the amount of time that extractors and flare gas without paying royalties on that production. That proposed policy is the subject of a joint op-ed that the Equality State Policy Center, Wyoming PTA, and Wyoming Education Association have sent to Wyoming’s newspapers.
Here’s the op-ed:
Wyo should take its royalties on natural gas extracted from school trust lands
By Marguerite Herman, Dan Neal, and Ken Decaria
This week the Wyoming Board of Land Commissioners can decide to close a large loophole in the collection of royalties on natural gas produced on school trust lands that is simply burned off as a nuisance. Under current policy, millions of cubic feet of gas go up in smoke free of the royalties that are due to the trust and Wyoming school children, who are the beneficiaries.
The proposed policy will be considered for a board vote on Feb. 2. The proposal declares that the state will collect royalties on gas produced from school trust leases beginning 15 days after completion of a well. If producers get permission from the Oil and Gas Conservation Commission or any other body to vent or flare natural gas for a longer period, they must pay royalties unless the Land Board determines that circumstances justify extending the royalty-free flaring, according to the proposed policy.
In addition, the policy provides for extensions of this royalty-free disposition for up to 180 extra days, so producers have time to determine how commercially productive the well is and to make long-term plans for capturing and selling the gas.
The Office of State Lands and Investment would make the final determination of when a well is “completed” and production begins. Producers must maintain records of the volume and composition of flared or vented gas. Royalties will be calculated based on a weighted average sales price received for like gas. Producers won’t get a free pass on royalties just because they have permission from the Oil and Gas Conservation Commission to flare.
At stake are millions of royalty dollars the state should be collecting on production from school trust lands, the land that the State of Wyoming is managing for the support of public schools. This is the land that was transferred to Wyoming at statehood in 1890 to be held in trust for schools. Currently, there are 3.2 million of surface acres and 3.9 million acres of subsurface minerals in the trust. They generated revenues of about $300 million to the Common School Income Fund, Permanent Land Fund and Capital Construction Account in fiscal 2011. Most of that is from mineral royalties.
The state has a fiduciary duty to ensure school trust lands make money for the beneficiaries, and that means making sure it captures royalty revenue from gas production, whether that gas is vented or flared or put in a pipeline. As OSLI Director Ryan Lance noted, the state gets one shot at that gas stream and royalty revenue. Once it goes up the flare stack, it’s gone. To let it go without collecting royalties is a clear violation of the fiduciary duty.
Certainly the 180-day extension is a too-generous concession to the industry, especially since the greatest volumes of gas often flow in the first days and weeks of production.
The Equality State Policy Center thinks even the 15-day grace period is inappropriate and contends the Office of State Lands and Investments should be collecting royalties on all production, as the State of Texas does.
As Mike May, senior auditor of Financial Compliance in the Texas General Land Office told the ESPC: “Our leases have language to the effect of ‘anything produced.’ … Disposition of the gas does not matter, whether it goes into a pipe or is flared.”
The Wyoming policy change was first proposed last October. The current form represents a fair amount of discussion and negotiation among Lance’s staff and producers with school trust leases. Meanwhile, flaring has continued. We are particularly concerned about the amount of flaring being done on school trust leases in the development of oil shale wells in the Niobrara formation in southeastern Wyoming.
How much is there? The volume reported to the Oil and Gas Conservation Commission over the past two years from state land wells is about 412 million cubic feet. That reported flaring and venting conservatively is worth about $250,000 in royalties. Production is on the increase, and it’s time to approve a policy that will make sure the royalties that are due are paid.
Marguerite Herman is legislative chair for the Wyoming PTA. Ken Decaria serves the Wyoming Education Association as its governmental affairs director. Dan Neal is executive director of the Equality State Policy Center.
Tuesday, January 31, 2012
Monday, January 23, 2012
What consumers want in an insurance exchange
Consumers want purchasing power
A Reality Check from Consumer Advocates: Project Healthcare
Our friends at Consumer Advocates: Project Healthcare offer the following guidelines and resources for consumers tracking the state's development of the insurance exchange required under the Affordable Care Act. The Governor's Office has scheduled a series of townhall meetings across the state to take comment on the exchange concept and on healthcare issues generally.
Meetings are set in three towns this week, including Gillette, Evansville, and Cheyenne. All meetings start at 6 p.m. and end at 8 p.m.
Every dollar in the healthcare system comes from consumers’ pockets whether through premiums, direct payments to providers or income taxes that fund Medicare and Medicaid. But we consumers rarely have enough information to actively influence this sector of the economy.
The new federal healthcare law begins to change that. While some insurance reforms have already been implemented a major change will begin on Jan. 1, 2014, when every state must have a new health insurance marketplace where individuals and small businesses can buy insurance. A well-designed insurance exchange will give us access to the information we need to make discerning choices and that should motivate insurance companies to begin to actively compete for our business and loyalty.
Wyoming must decide whether to build its own exchange, partner with other states or partner with the federal government to operate our exchange, CAPH urges decision-makers to focus on consumers and maximize this opportunity to strengthen benefits and provide important protections for all Wyoming citizens.
Should the state establish its own exchange? CAPH believes the state should avoid putting into place a system designed by insurance companies. Let’s explore a federal /state partnership designed to deliver benefits of the exchange to citizens in a timely way with the ultimate goal of moving operations from the federal to the state level over time.
We support the ‘no wrong door’ approach. This allows people (individuals, families and small businesses) to find insurance no matter their income or where they start their search. A single application will determine eligibility for public programs, calculate subsidies for those making less than 400% of federal poverty level or determine if an individual is exempt from the mandate to buy coverage. Exchanges should create a seamless interface with Medicaid and plan for continuity of care for those individuals moving between private and public insurance as income fluctuates.
Essential benefits should be as robust as possible to protect individuals from being under-insured. Consumers just want insurance to work—to pay for the care we need when we need it and it should protect our assets, so we don’t lose our homes or savings if we get sick or injured. No tricks. No surprises. No gotchas. All insurance products sold in the exchange will provide a standard benefit package that provides comprehensive coverage. Deductibles and co-pays will vary but will be clearly labeled so consumers know exactly what part of healthcare costs are their responsibility. This standardization will make plans easier to compare and provide the security insurance was meant to provide.
Insurance rules must ensure transparency and accountability. Consumers should have access to all information that enables them to weigh the value of their plans such as how much of premiums are actually spent on medical claims vs. overhead, how often rate increases are requested, timeliness of claims payments and how often claims are denied and why. Consumer reviews and experiences should be easily accessible to all purchasers at the point of sale much like consumer reviews at internet travel sites.
Create and enforce strong private insurance rules and guard against adverse selection. The state can make sure the same quality standards apply to all insurance plans, whether in the exchange or not. This guards against the possibility that cheap, low- value plans will draw healthy people outside the exchange. An exchange with only sick people will cause prices to soar and undermine the success of the exchange.
Reserve the right for the exchange to serve as an active purchaser and not just accept all products offered for sale in the exchange. Exchange administrators in Wyoming should be able – if they choose – to negotiate prices on plans that meet quality and value standards. This may be challenging in such a small state, but we should make sure it’s an option. This will help maximize market clout for consumers.
Provide strong consumer advocates and ensure pro-consumer leadership. Many customers will need help navigating the exchange and understanding all the decisions to be made in buying insurance. People designing and operating the Wyoming exchange should continually evaluate consumer satisfaction and use consumer concerns to guide ongoing improvement of the system. Consumers want expert, pro-consumer leadership that can go toe-to-toe with insurers and industry representatives.
Exchanges should help to make healthcare in Wyoming more effective and efficient. Consumers expect to share in the overall goals of health reform: cost savings and improved quality of care.
For more information on health reform and exchanges, check out these websites and articles: Wyoprojecthealthcare.com - Consumers can share their own healthcare stories here
Community Catalyst - Exchanges: Top Ten Priorities for Consumer Advocates
http://www.communitycatalyst.org/doc_store/publications/Exchanges_Top_Ten.pdf
Kaiser Family Foundation --Explaining Healthcare Reform: what are insurance exchanges?
http://www.kff.org/healthreform/upload/7908.pdf
Families USA—Benefits of Exchanges
http://familiesusa2.org/assets/pdfs/health-reform/Benefits-of-Exchanges.pdf
National Academy for State Health Policy—Health Insurance Exchange Basics
http://www.nashp.org/sites/default/files/health.insurance.exchange.basics.pdf
Center on Budget and Policy Priorities—An analysis of state exchange legislationhttp://www.cbpp.org/files/CBPP-Analysis-of-Exchange-Legislation-Establishment-and-Governance.pdf
A Reality Check from Consumer Advocates: Project Healthcare
Our friends at Consumer Advocates: Project Healthcare offer the following guidelines and resources for consumers tracking the state's development of the insurance exchange required under the Affordable Care Act. The Governor's Office has scheduled a series of townhall meetings across the state to take comment on the exchange concept and on healthcare issues generally.
Meetings are set in three towns this week, including Gillette, Evansville, and Cheyenne. All meetings start at 6 p.m. and end at 8 p.m.
- Jan. 23 in Gillette at the Gillette College Presidential Hall.
- Jan. 24 in Evansville at the Community Center.
- Jan. 25 in Cheyenne at Laramie County Community College's Centennial Room 130
The new federal healthcare law begins to change that. While some insurance reforms have already been implemented a major change will begin on Jan. 1, 2014, when every state must have a new health insurance marketplace where individuals and small businesses can buy insurance. A well-designed insurance exchange will give us access to the information we need to make discerning choices and that should motivate insurance companies to begin to actively compete for our business and loyalty.
Wyoming must decide whether to build its own exchange, partner with other states or partner with the federal government to operate our exchange, CAPH urges decision-makers to focus on consumers and maximize this opportunity to strengthen benefits and provide important protections for all Wyoming citizens.
Should the state establish its own exchange? CAPH believes the state should avoid putting into place a system designed by insurance companies. Let’s explore a federal /state partnership designed to deliver benefits of the exchange to citizens in a timely way with the ultimate goal of moving operations from the federal to the state level over time.
We support the ‘no wrong door’ approach. This allows people (individuals, families and small businesses) to find insurance no matter their income or where they start their search. A single application will determine eligibility for public programs, calculate subsidies for those making less than 400% of federal poverty level or determine if an individual is exempt from the mandate to buy coverage. Exchanges should create a seamless interface with Medicaid and plan for continuity of care for those individuals moving between private and public insurance as income fluctuates.
Essential benefits should be as robust as possible to protect individuals from being under-insured. Consumers just want insurance to work—to pay for the care we need when we need it and it should protect our assets, so we don’t lose our homes or savings if we get sick or injured. No tricks. No surprises. No gotchas. All insurance products sold in the exchange will provide a standard benefit package that provides comprehensive coverage. Deductibles and co-pays will vary but will be clearly labeled so consumers know exactly what part of healthcare costs are their responsibility. This standardization will make plans easier to compare and provide the security insurance was meant to provide.
Insurance rules must ensure transparency and accountability. Consumers should have access to all information that enables them to weigh the value of their plans such as how much of premiums are actually spent on medical claims vs. overhead, how often rate increases are requested, timeliness of claims payments and how often claims are denied and why. Consumer reviews and experiences should be easily accessible to all purchasers at the point of sale much like consumer reviews at internet travel sites.
Create and enforce strong private insurance rules and guard against adverse selection. The state can make sure the same quality standards apply to all insurance plans, whether in the exchange or not. This guards against the possibility that cheap, low- value plans will draw healthy people outside the exchange. An exchange with only sick people will cause prices to soar and undermine the success of the exchange.
Reserve the right for the exchange to serve as an active purchaser and not just accept all products offered for sale in the exchange. Exchange administrators in Wyoming should be able – if they choose – to negotiate prices on plans that meet quality and value standards. This may be challenging in such a small state, but we should make sure it’s an option. This will help maximize market clout for consumers.
Provide strong consumer advocates and ensure pro-consumer leadership. Many customers will need help navigating the exchange and understanding all the decisions to be made in buying insurance. People designing and operating the Wyoming exchange should continually evaluate consumer satisfaction and use consumer concerns to guide ongoing improvement of the system. Consumers want expert, pro-consumer leadership that can go toe-to-toe with insurers and industry representatives.
Exchanges should help to make healthcare in Wyoming more effective and efficient. Consumers expect to share in the overall goals of health reform: cost savings and improved quality of care.
For more information on health reform and exchanges, check out these websites and articles: Wyoprojecthealthcare.com - Consumers can share their own healthcare stories here
Community Catalyst - Exchanges: Top Ten Priorities for Consumer Advocates
http://www.communitycatalyst.org/doc_store/publications/Exchanges_Top_Ten.pdf
Kaiser Family Foundation --Explaining Healthcare Reform: what are insurance exchanges?
http://www.kff.org/healthreform/upload/7908.pdf
Families USA—Benefits of Exchanges
http://familiesusa2.org/assets/pdfs/health-reform/Benefits-of-Exchanges.pdf
National Academy for State Health Policy—Health Insurance Exchange Basics
http://www.nashp.org/sites/default/files/health.insurance.exchange.basics.pdf
Center on Budget and Policy Priorities—An analysis of state exchange legislationhttp://www.cbpp.org/files/CBPP-Analysis-of-Exchange-Legislation-Establishment-and-Governance.pdf
Friday, January 13, 2012
Wyoming celebrates MLK/Equality Day
Rez Action sets march, speeches in Riverton
Other events planned in Casper, Cheyenne, and Laramie
State residents will celebrate Martin Luther King Day with in communities across Wyoming including in Riverton where Rez Action, a group working with the Equality State Policy Center, plans a march and speeches by three leaders of the Wind River tribes.
“We invite all those who want to celebrate equality to march with us to honor the work of Dr. Martin Luther King, Jr.,” a news release from the organizers says. “We march in celebration of equality and Dr. King’s vision of ‘that all of us will be able to sit down together at the table of brotherhood.’”
Other events are planned in Laramie and Casper.
Tribal members Micah Lott and Molly Holt are two of the Rez Action members staging Monday’s “Embrace Equality Celebrate Diversity” event in Riverton. Participants will rendezvous at 1 p.m. at City Park for the march to City Hall.
State Rep. Patrick Goggles, the House minority leader who represents HD33, will speak as well as former state representative Scott Ratliff, now an special assistant on Native American issues to U.S. Sen. Mike Enzi, Northern Arapaho tribal liaison Gary Collins, and Riverton activist Cody Green.
For information, please contact Micah Lott at 307-851-1344 or micah.lott93@gmail.com. Rez Action members describe the group as an organization of “dedicated activists who fight social injustice, discrimination, and advocate for a healthy environment.”
The Casper NAACP will host the annual Martin Luther King Jr. Day March and Rally starting at 11 a.m. at Casper’s City Park at Center and 7th streets. Marchers will walk to the United Methodist Church downtown. Eastern Shoshone Tribal elder Ivan Posey will speak. Members of the Wind River Unity Youth Council will participate as dancers with the Scout River Drum Group. Following a soup lunch at the church, the Unity group will conduct a workshop at 1 p.m.
In Casper, contact Nurieh Glasgow at 234-3428 or Janet de Vries at 268-2446 for more information.
A third march is planned on Jan. 16 in Laramie. Marchers will walk from the Albany County Courthouse to the University of Wyoming Student Union starting at 4 p.m. followed by a supper in the union ballroom. As part of its Martin Luther King Jr./Days of Dialogue, actor Hill Harper will speak at 1 pm. Jan 18 at the Wyoming College of Arts and Sciences auditorium. A full schedule of events is available here.
In Cheyenne, a march is planned at Noon from the old Union Pacific Railroad Depot up Capitol Avenue to the state Capitol. Gov. Matt Mead and Mayor Rick Kaysen will speak along with State Auditor Cynthia Cloud, and State Supt. of Public Instruction Cindy Hill. The march is being organized by the Love and Charity Club. Contact moderator Rita Watson at 307-632-2338 for more information.
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| Adrenne Vetter, Molly Holt, and L'Dawn Olsen prepare banners for the "Embrace Equality" march in Riverton |
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